Bloomberg Brief: Speaking of participants, a lot of commodity hedge funds got hit pretty hard by the sell-off earlier this month. Any theories what that might be about?
Jennifer Fan, Arrowhawk Capital Partners: A lot of funds’ decisions to focus on directional trading, particularly in light of the late move, is at least in part based on their capacity. Many of these funds are large, due to the fee incentive to grow as big as possible as fast as possible, and for that you need to run mostly directional bets that provide the units of volatility for the size of the markets. For us, if we’re doing things like Skype-ing farmers and trading ocean freight to get an informational edge the best way to generate alpha is through some of the examples I mentioned earlier. for this type of investing there are constraints, so we tend to be very conservative about capacity.

BB: Hang on. Skype-ing farmers?
JF: I Skype with farmers. Farmers love Skype.

Bloomberg Brief: 5.21.11 [BB]

Comments (17)

  1. Posted by Every dude on chat roulette | May 24, 2011 at 8:15 PM

    Show me your boobs

  2. Posted by ChiefNumberDude | May 24, 2011 at 8:18 PM

    Remain calm, all is well
    -Former MotherRock Quant

  3. Posted by Confucius | May 24, 2011 at 8:21 PM

    Jennifer Fan doesn’t really get Farmville, does she?

  4. Posted by Farmer_who_knows | May 24, 2011 at 8:23 PM

    Chat Roulette is more about dick flashing, actually.

  5. Posted by trojan | May 24, 2011 at 8:25 PM

    want a jolly rancher?

  6. Posted by Comment Not Removed Yet | May 24, 2011 at 8:27 PM

    BessCam!

  7. Posted by Crude Guy | May 24, 2011 at 8:31 PM

    If you Skype with the trade room at Arcadia and Parnon you’ll see a lot of boobs according to the CFTC.

  8. Posted by Peter North | May 24, 2011 at 8:39 PM

    I would tell a joke about my dick but it’s a long one.

  9. Posted by Greathair | May 24, 2011 at 8:47 PM

    I think she’s dreamy

  10. Posted by VonSloneker | May 24, 2011 at 8:58 PM

    Take your top off and I’ll give you my crop report like Clarence Beakes…

    -Skypeing Farmer

  11. Posted by Low Frequency | May 24, 2011 at 9:39 PM

    Our organic commodities fund prefers to send smoke signals to farmers. 

  12. Posted by Anonymous | May 24, 2011 at 10:22 PM

    Check out her interview on B Berg TV on April 28th.  She’s saying they (she and her hedge fund) like gold, palladium and corn. And then check out the charts for said commodities – she damn near top-ticked each of those markets!

    She is hot though, in a graduated-from-NYU-at-19 kind of way…

  13. Posted by spectator | May 24, 2011 at 10:40 PM

    any farmer that knows how to skype also knows how to play naive hedge fund analysts

  14. Posted by Guest | May 25, 2011 at 3:51 AM

    Sounds like you should join the Fan club…

  15. Posted by Ray Finkle | May 25, 2011 at 11:15 AM

    Wow!  Bloomberg charges $2,000/yr for a subscription to the ?  For that price you can get your own terminal which in turn has a free subscription to it.

    -Guy who noticed this

  16. Posted by Guest | May 25, 2011 at 12:53 PM

    Bloomberg subscriptions are more like 2k/month…

  17. Posted by Ray Finkle | May 25, 2011 at 2:52 PM

    Yeah, my mind slipped me.  Apologies.  However, per the add for the newsletter subscription- you only get one of those a week.  I get them to my bb inbox every morning, total ripoff.

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